LUNA, I never did the research, but neither did I list it on an exchange

LUNA, I never did the research, but neither did I list it on an exchange

My 2cts on this

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When I first read about it, the wording was confusing, and I simply skipped it all together

No research meant no investment

Meanwhile everyone was aping into the shiny object: price

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It reads on CoinmarketCap that UST keeps its peg thru an algo that burns LUNA

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Do not back a stable coin with your governance token.

Do not.

Could LUNA have been assimilated as such?

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If you consider that:

Anyone that holds Luna is essentially in a virtual Vault that backs the value of UST, with their LUNA

Whether you're doing something else on LUNA, like apps, NFTs, well you're de-facto losing LUNA value if UST loses value

=> Systemic risk for LUNA

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Attempt at backing UST with Bitcoin did not correct flaw at fundamental design

Lack of transparency didn't help

Everything should be verifiable on the chain even by novice non-coders like me

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I trust in regulators to be savvy enough to understand the somewhat not complicated intricacies at play

I did not take much time to write my 2 cts here, not much research

They can do better than me for sure

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Fiat is a stable coin backed by real economy activity

But with so much debt in the system, it is starting to look like LUNA

Where the authorities r simply printing Fiat and ignoring the systemic risks they create in doing so

i.e a closed loop the magnitude of LUNA

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By the way, I am bullish Stacks, Arkadiko and Bitcoin in the long term

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Maker Dao did experience a black swan event in 2020 and found a somewhat acceptable & robust resolution. It didn't go to zero.

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Arkadiko vaults r NOT backed by $Dikos.

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If you hold Stacks, you are not against your will in a de-facto everybody vault

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When Vaults are liquidated, loans are being repaid, and stables remain backed almost perfectly

It's a more robust & more transparent model than FIAT

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Last but not least, the utility of Stacks is that of smart contracts for Bitcoin

and not that of solely backing a stable coin

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This is Not investment advice!